An Empirical Analysis Of Xingtai City Price Regulation On Residents’ Consumption Status

Price is a key indicator of the process of economic development, and plays an indispensable role in people’ everyday life. Price is not stable pattern but always gives social unrest, which is the seed of the crisis. Investigating the root cause, price change, the residents’ incomes and consumption are closely linked. Process of rising prices, the costs of the life of people will increase accordingly. If the incomes can’t keep up or transcendence of ascension, then people’s life will gradually become embarrassed. So th e price change and the internal relations of residents’ consumption have important social significance and economic significance. In the past of economic research, researchers pay less attention on the underlying method of combination of price and income.This research object is based on different income level of urban and rural residents in Xingtai city. By the change of the consumer price index of these years, we describe the price operation rules, and analyze the price changes on the urban and rural resi dents’ propensity to consume and purchase behaviors by using the ELES model. This research shows that the rising of prices influences the level of consumption in different income groups. Usually the lowest income groups share of consumer spending behavior and is most affected by price increases. Following with the rising of incomes, price impact on consumer spending also decreases obviously. In eight major commodities, food product is people’s rigid demand for commodities. Its consumer demands for basic not to transfer prices were up to. This part of consumer spending is the most basic requirements, and it meet the residents live with different people income decreases. Other consumer spending is affected by the demand for food, which will be bigger and bigger. Aiming at price analysis of the impact on the residents’ consumption of Xingtai, this paper suggests that the competent department of price regulation and control should be deduced from the price regulation of information gathering and analysis. Moreover, the price regulations of tracking and investigation improve the current situation.From the perspective of empirical analysis, this research provides the theoretical model of econometrics with a valuable academic application. In the perspective of this research, we show the practical viewpoint to provide the decision reference to the price control department of Xingtai city.